Friday, December 12, 2008

Auto Bill Dies, Most Banks Bankrupt

The good news...the auto bailout died in the Senate. A lot of the media coverage is calling this a bad thing. If the media knew about business, maybe all the newspapers wouldn't be going bankrupt.

Regardless, it is not my responsibility to make sure that failing businesses stay afloat. Free markets work when they are left alone. Freedom of failure is an essential element. Yay Senate!

Following that is this great quote from Jim Rogers:

"Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt," said Rogers, who is now a private investor.

"What is outrageous economically and is outrageous morally is that normally in times like this, people who are competent and who saw it coming and who kept their powder dry go and take over the assets from the incompetent," he said. "What's happening this time is that the government is taking the assets from the competent people and giving them to the incompetent people and saying, now you can compete with the competent people. It is horrible economics."

Taking the assets from the competent and giving them to the incompetent. That's a great way to spell B-A-I-L-O-U-T. Why give more money to people who couldn't handle it the first time? Seems obvious to me... you reward incompetence, you get more incompetence.

Bailouts Delenda Est.